G.R. No. 233922 (Galang v. Peakhold)

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G.R. No.

233922, January 24, 2018

MA. VICTORIA M. GALANG v. PEAKHOLD FINANCE


CORPORATION AND THE REGISTER OF DEEDS OF
CALOOCAN CITY

FACTS:

This case stemmed from a complaint for annulment of deed of


real estate mortgage and foreclosure proceedings filed by
Galang against respondent Peakhold Finance Corporation
(Peakhold) before the RTC of Caloocan City. Essentially, the
complaint alleged that: (a) Galang is the registered owner of
a 150-square meter (sq. m.) lot located at Deparo, Caloocan
City, and covered by Transfer Certificate of Title; (b) the
subject lot was mortgaged to Peakhold without her knowledge
and consent; (c) Peakhold foreclosed the subject lot, and
eventually, acquired the same via an auction sale; and (d) as
such, the mortgage must be annulled as her signature in the
mortgage document was forged or falsified.While the
Annulment Case was pending, Peakhold filed an Ex-Parte
Petition for Issuance of Writ of Possession over the subject lot
to which Galang filed her opposition. RTC granted Peakhold's
Ex-Parte Petition and ordered the issuance of a writ of
possession in favor of Peakhold. Galang filed a Petition for
Relief from Judgment contending that the Ex-Parte Petition is
not summary in nature and should have been threshed out in
an adversarial proceeding, as it essentially deals with the
validity of the subject deed.Peakhold, through a Motion to
Dismiss, sought the dismissal of the Petition for Relief Case on
the ground of forum shopping which was granted. Galang filed
a motion for reconsideration but was denied so she elevated
the matter to the CA via a petition for certiorari and
mandamus.

ISSUE:

Whether or not the Annulment Case to nullify the alleged


fraudulent mortgage document is proper.
RULING

The CA erred in upholding the dismissal of the Annulment


Case on the ground of forum shopping.
Thus, to determine whether a party violated the rule against
forum shopping, it is essential to ask whether a final judgment
in one case will amount to res judicata in another or whether
the following elements of litis pendentia are
present: (a) identity of parties, or at least such parties as
representing the same interests in both actions; (b) identity
of rights asserted and reliefs prayed for, the relief being
founded on the same facts; and (c) the identity of the two (2)
preceding particulars, such that any judgment rendered in the
other action will, regardless of which party is successful,
amount to res judicata in the action under consideration.\

The Court finds that Galang correctly declared in the Amended


Complaint in the Annulment Case that she did not
commence any action or proceeding which involves the same
causes of actions, reliefs, and issues in any court, tribunal, or
agency at the time she filed the said Amended Complaint, or
anytime thereafter. In this light, there is no litis pendentia, as
the cases essentially involve different causes of actions, reliefs,
and issues. Thus, any judgment rendered in one will not
necessarily amount to res judicata in the action under
consideration. This holds true even if the complaint in
the Annulment Case was subsequently amended by Galang.

Thus, a revival of the Annulment Case and its remand to RTC


is proper.

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